Finsbury pastry factory closure to see 250 jobs go
Finsbury Food Group has confirmed that it is to shut its loss-making Grain D'Or pastry factory, resulting in the loss of 250 jobs.
Following a consultation with employees and union representatives, Finsbury said it will shut the Brent-based bakery by December 2.
The group said in a statement: "The company has engaged extensively with employee representatives to carefully consider the future of the business, however no viable alternatives to closure have emerged.
"As a result, 250 employees are at risk of redundancy at its London site."
Finsbury said it will try to offer affected workers alternative employment in other group locations and has entered consultations with those affected.
Finsbury acquired Grain D'Or as part of its takeover of the Fletcher Group of Bakeries in 2014 but the pastry and bread supplier is facing the chopping block after failing to turn a profit amid rising competition.
During the 12 months to July 2017, Grain D'Or generated £28.5 million in revenue but booked an overall operating loss of £3.3 million.
Finsbury is expected to take an exceptional cash cost associated with the closure of Grain D'Or of up to £10 million.
When the original announcement was made in August, the Bakers, Food and Allied Workers Union blamed the closure in part on the failed renewal of key supermarket contracts - with the likes of Marks & Spencer and Sainsbury's - that accounted for about 60% of Grain D'Or's volumes.